Humber/Ontario Real Estate Course 2 Exam Practice

Under what circumstances would a Real Estate Salesperson NOT be required to disclose a known fact about the property to a potential buyer?

1. If the fact is a material latent defect.

2. If the fact is a patent defect visible to the buyer.

3. If the fact is covered by public disclosure laws.

4. If the buyer waives the need for disclosures in writing.

5. If the defect does not affect the property's value.

6. If the seller instructs the salesperson not to disclose.

The correct answer is: If the fact is a patent defect visible to the buyer.

In this case, option B is the correct answer. A Real Estate Salesperson would not be required to disclose a known fact about the property if the fact is a patent defect visible to the buyer. Patent defects are readily visible or could easily be discovered by a reasonable inspection by the buyer. Since the buyer can discover these defects themselves, the salesperson may not be obligated to disclose them. On the other hand, for the other options: A. If the fact is a material latent defect: Real Estate Salespeople are required to disclose material latent defects, which are hidden defects that may not be easily observed during a reasonable inspection. C. If the fact is covered by public disclosure laws: Salespeople must still disclose known facts about the property even if public disclosure laws cover them. D. If the buyer waives the need for disclosures in writing: It is always recommended to disclose known facts about the property to ensure transparency and avoid potential legal issues. E. If the defect does not affect the property's value: Even if the defect may not affect the property's value, it is generally best practice to disclose any known facts about the property to potential buyers. F. If the seller instructs the salesperson not to disclose: The instructions from the seller do not negate the salesperson's responsibility to disclose material information to potential buyers.